BIEM(SZ:002832) Changjiang Securities·2025-09-01 13:12Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company achieved a revenue of 2.1 billion yuan in H1 2025, representing a year-on-year increase of 8.6%, while the net profit attributable to shareholders was 410 million yuan, down 13.6% year-on-year. In Q2 alone, revenue reached 820 million yuan, up 22.3% year-on-year, but net profit fell 29.3% to 80 million yuan [2][4]. Summary by Sections Revenue Performance - In H1 2025, the company reported a revenue of 2.1 billion yuan, with a year-on-year growth of 8.6%. The net profit attributable to shareholders was 410 million yuan, reflecting a decline of 13.6% year-on-year. Q2 revenue was 820 million yuan, showing a significant increase of 22.3% year-on-year, while net profit for Q2 was 80 million yuan, down 29.3% year-on-year [2][4]. Channel Performance - Revenue from direct sales, franchise, and e-commerce channels in H1 2025 grew by 11%, declined by 10%, and surged by 72%, reaching 1.41 billion yuan, 460 million yuan, and 210 million yuan respectively. The company opened 28 new direct stores, bringing the total to 672, and added 6 franchise stores, totaling 654. The e-commerce channel's revenue growth was driven by strategic investments in content e-commerce platforms like Douyin and Xiaohongshu [8]. Profitability and Costs - The gross margin for direct sales, franchise, and e-commerce channels in H1 2025 decreased by 3.5 percentage points, 2.4 percentage points, and increased by 0.3 percentage points respectively. The sales expense ratio rose by 1.6 percentage points to 51.8%, primarily due to increased costs associated with brand building and direct store openings [8]. Inventory and Cash Flow - The company's inventory increased by 36% year-on-year to 1.04 billion yuan, with inventory turnover days rising by 45 days to 354 days. This increase in inventory negatively impacted operating cash flow, which decreased by 37% year-on-year to 340 million yuan [8]. Future Outlook - The company is expected to see revenue growth driven by direct store openings and e-commerce channel expansion. However, short-term expenses may continue to pressure profitability. The company is positioned in the high-end sports fashion segment, and with a stabilizing retail environment, growth from its multi-brand matrix is anticipated. Projected net profits for 2025-2027 are 700 million yuan, 780 million yuan, and 860 million yuan, with year-on-year changes of -10%, +11%, and +11% respectively [8].